Vigilance needed to protect against real estate scams

Released 16/07/2014

Real estate
agents are being warned to be on high alert for property scams after the arrest
this week of three people
by South African Police in connection with the attempted fraudulent sale of a
home in Western Australia.

Attorney-General,
Simon Corbell, said the fraudulent sale of a home is one of the most
serious types of scam.

"A property
scam can result in a home being sold without the lawful owner's knowledge or
permission. This type of scam
traditionally occurs when the owner lives or is travelling overseas," Mr
Corbell said.

"Many
professionals apart from those in the real estate industry are involved when a
property is sold.

"These
professionals need to exercise due diligence in all transactions. Particularly when dealing with overseas
transactions, check if you are in any doubt.

"Independently
confirm any change in contact details for the properties you manage to ensure
you are dealing with the real owner.
Signatures should be checked with originals on file. Have any doubtful documents verified by the
issuing authority.

"Homeowners,
particularly absentee owners, are also warned to be vigilant. Have suitable protocols in place, for
example, security questions, to prevent the possibility of your home being sold
without your knowledge or permission."

Enquiries
can be directed to the Office of Regulatory Services on 6207 3000 (select 8).